The Indian government has significantly raised customs duties on imports of gold and silver from 6% to 15% and on platinum from 6.4% to 15.4%. This decision is part of efforts to protect the country's macroeconomic stability and conserve foreign exchange reserves during a time of rising global uncertainty, particularly due to the ongoing crisis in West Asia. Prime Minister Narendra Modi recently urged the public to refrain from purchasing gold for a year to help conserve foreign reserves, as India relies heavily on imports to meet its gold demand. The government has expressed concerns that rising global crude oil prices and geopolitical tensions could lead to increased import bills and inflationary pressures. The new customs duties are intended to moderate avoidable import demand for precious metals, which are primarily driven by consumption and investment, thus easing pressure on the external account. This measure is not intended to be prohibitory but rather a calibrated approach to manage external-sector risks while maintaining market flexibility and consumer choice. Historically, customs duties on precious metals have been adjusted based on the country's macroeconomic conditions.